Applied Digital (NASDAQ:APLD) Shares Down 3.7% – Should You Sell?

Applied Digital Corporation (NASDAQ:APLD)’s stock price dropped 3.7% on Monday . The stock traded as low as $33.31 and last traded at $33.67. Approximately 20,652,226 shares changed hands during mid-day trading, a decline of 24% from the average daily volume of 27,111,127 shares. The stock had previously closed at $34.98.

Analysts Set New Price Targets

APLD has been the topic of several recent research reports. Zacks Research downgraded shares of Applied Digital from a “hold” rating to a “strong sell” rating in a research report on Wednesday, April 8th. Citigroup reiterated an “outperform” rating on shares of Applied Digital in a research report on Wednesday, January 28th. Wall Street Zen downgraded shares of Applied Digital from a “hold” rating to a “sell” rating in a research report on Saturday, April 11th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Applied Digital in a research report on Friday. Finally, B. Riley Financial lifted their price objective on shares of Applied Digital to $53.00 and gave the company a “buy” rating in a research report on Friday, January 9th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $44.33.

Applied Digital Stock Performance

The stock has a market capitalization of $9.62 billion, a P/E ratio of -45.50 and a beta of 7.25. The company has a current ratio of 2.38, a quick ratio of 2.38 and a debt-to-equity ratio of 1.65. The company’s 50-day moving average is $28.27 and its two-hundred day moving average is $30.01.

Applied Digital (NASDAQ:APLD) last released its earnings results on Wednesday, April 8th. The company reported ($0.36) EPS for the quarter, missing the consensus estimate of ($0.13) by ($0.23). The company had revenue of $108.55 million for the quarter, compared to analyst estimates of $78.47 million. Applied Digital had a negative net margin of 52.84% and a negative return on equity of 15.91%. The firm’s quarterly revenue was up 139.3% on a year-over-year basis. During the same period in the previous year, the business posted ($0.08) EPS. As a group, sell-side analysts anticipate that Applied Digital Corporation will post -0.52 EPS for the current fiscal year.

Insider Buying and Selling

In other Applied Digital news, Director Chuck Hastings sold 45,987 shares of the firm’s stock in a transaction dated Thursday, January 29th. The shares were sold at an average price of $38.57, for a total transaction of $1,773,718.59. Following the transaction, the director owned 388,372 shares of the company’s stock, valued at approximately $14,979,508.04. This trade represents a 10.59% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 9.50% of the company’s stock.

Hedge Funds Weigh In On Applied Digital

Several large investors have recently bought and sold shares of the stock. Newbridge Financial Services Group Inc. increased its stake in Applied Digital by 8.6% during the 4th quarter. Newbridge Financial Services Group Inc. now owns 3,800 shares of the company’s stock valued at $93,000 after buying an additional 300 shares during the period. Concurrent Investment Advisors LLC increased its stake in Applied Digital by 1.5% during the 4th quarter. Concurrent Investment Advisors LLC now owns 21,332 shares of the company’s stock valued at $523,000 after buying an additional 318 shares during the period. Brookstone Capital Management increased its stake in Applied Digital by 3.6% during the 4th quarter. Brookstone Capital Management now owns 9,275 shares of the company’s stock valued at $227,000 after buying an additional 321 shares during the period. ProShare Advisors LLC increased its stake in Applied Digital by 1.0% during the 3rd quarter. ProShare Advisors LLC now owns 36,652 shares of the company’s stock valued at $841,000 after buying an additional 376 shares during the period. Finally, Independent Advisor Alliance increased its stake in Applied Digital by 4.6% during the 4th quarter. Independent Advisor Alliance now owns 9,215 shares of the company’s stock valued at $226,000 after buying an additional 407 shares during the period. Institutional investors and hedge funds own 65.67% of the company’s stock.

Applied Digital Company Profile

Applied Digital (NASDAQ: APLD) is a technology company specializing in the development and operation of large-scale digital infrastructure and sustainable Bitcoin mining solutions. Through its integrated platform, the company designs, builds and manages turnkey data center facilities while also providing comprehensive hosting services for cloud, colocation and enterprise computing needs. Applied Digital’s modular approach to facility design enables rapid deployment of capacity and streamlined integration of power, cooling and network connectivity.

In addition to its data center business, Applied Digital operates a network of Bitcoin mining sites that leverage vertically integrated capabilities, including hardware procurement, mining farm engineering, energy management and real-time performance monitoring.